MIRA INFORM REPORT

Report Date :

04.05.2013

IDENTIFICATION DETAILS

Name :	SHETRON LIMITED
Formerly Known As :	SHETRON METALS LIMITED
Registered Office :	Plot No. 1, Bommasandra Industrial Area, Hosur Road, Bangalore – 560099, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.06.1980
Com. Reg. No.:	08-003842
Capital Investment / Paid-up Capital :	Rs. 90.000 Millions
CIN No.: [Company Identification No.]	L21014KA1980PLC003842
TAN No.: [Tax Deduction & Collection Account No.]	BLRSO1805G BLRS02308F
PAN No.: [Permanent Account No.]	AACCS9650F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Printed/Lacquered Tin Coated Sheet, Dry Battery Cell Jackets and Components, Metal Containers
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1700000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is a well established company having a moderate track record. The company has incurred some loss from its operations during 2012. The external borrowing appears to be huge. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long Term Rating = BB
Rating Explanation	It indicates an elevated vulnerability to default risk
Date	24.05.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Factory 1:	Plot No. 1, Bommasandra Industrial Area, Hosur Road, Bangalore – 560099, Karnataka, India
Tel. No.:	91-80-2226 8920 / 2226 8921 / 7832290 / 1 / 2 / 46 / 27832290
Fax No.:	91-80-2225 8285 / 7832293
E-Mail :	shetron@bom3.vsnl.net.in venkat@shetrongroup.com
Website :	http://www.shetrongroup.com
Corporate Office	A/6, M.I.D.C. Road 5, Ramakrishna Mandir Road, Chakala, Andheri [East], Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-2832 6228 / 2832 8609
Fax No.:	91-22- 2837 2145
E-Mail :	shetron@vsnl.com
Head Office :	26/3A, Sankey Road, Bangalore - 560 052, Karnataka, India
Tel. No.:	91-80-226 8920 / 21
Fax No.:	91-80-225 8285
E-Mail :	shetron@vsnl.com
Factory 2 :	Asangaon Mumbai-Nasik Highway, Post Vasind, Taluk Shahapur, Dist Thane - 421604, Maharashtra, India
Tel. No.:	91-952527-220097/220521
Fax No.:	91-952527-220520

DIRECTORS

As on 29.09.2012

Name :	Mr. Babugowda Sanganagowda Patil
Designation :	Director
Address :	No.143, 10th Main Sthcrosrmv Extension, Bangalore – 560080, Karnataka, India
Date of Birth/Age :	20.03.1967
Date of Appointment :	16.12.1987
DIN No.:	00061959
Name :	Mr. Divakar Sanku Shetty
Designation :	Whole-Time Director
Address :	Divya R.S. Jain Marg, Gandhigram Road, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	03.06.1943
Qualification :	B.Com.
PAN No.:	AAJPS9636B
Date of Appointment :	09.06.1980
DIN No.:	00432755
Name :	Madegowda Mahadeviah
Designation :	Director
Address :	Divya R.S. Jain Marg, Gandhigram Road, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	15.05.1939
Date of Appointment :	30.10.2006
DIN No.:	02573037
Name :	Mr. Karitik Manohar Nayak
Designation :	Managing Director
Address :	Divya R.S. Jain Marg, Gandhigram Road, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	03.03.1967
Qualification :	M.S. (Industrial Engineering)
PAN No.:	ABEPN0021D
Date of Appointment :	01.04.1999
DIN No.:	00477686

KEY EXECUTIVES

Name :	Vidyacharam Chivukula
Designation :	Secretary
Address :	No.4, 8^th Cross Bhuveneshwarinagar, Hebbal Po, Bangalore – 560025, Karnataka, India
Date of Birth/Age :	29.11.1974
Date of Appointment :	01.02.2012

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholders	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2021057	22.45
Bodies Corporate	3685130	40.93
Sub Total	5706187	63.38
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	81633	0.91
Sub Total	81633	0.91
Total shareholding of Promoter and Promoter Group (A)	5787820	64.29
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	100	0.00
Foreign Institutional Investors	158669	1.76
Sub Total	158769	1.76
(2) Non-Institutions
Bodies Corporate	510941	5.68
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1255108	13.94
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	959832	10.66
Any Others (Specify)	330830	3.67
Foreign Corporate Bodies	132687	1.47
Non Resident Indians	164695	1.83
Clearing Members	33448	0.37
Sub Total	3056711	33.95
Total Public shareholding (B)	3215480	35.71
Total (A)+(B)	9003300	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	9003300	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Printed/Lacquered Tin Coated Sheet, Dry Battery Cell Jackets and Components, Metal Containers

Products :

Product Description	Item Code
Printed/Lacquered Tin Coated Sheet	7212.30
Dry Battery Cell Jackets and Components	8506.00
Metal Containers	7310.00

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Metal Container including Food Cars Cans and Dry Cells – (Jackets and Components including printed / lacquered sheets) * Current Year	MT	20870	9479

Note: * As certified by the Management and not verified by Auditors being technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• The Cosmos Co-Operative Bank Limited, Vile Parle Branch, Nehru Road, Vile Parle East, Mumbai - 400057, Maharashtra, India
• State Bank of India
• Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Term loans	566.900	512.100
Other loans and advances	0.900	0.300
Short-term borrowings
Loans repayable on demand	279.600	282.700
Commercial paper	8.000	0.000
Total	855.400	795.100

Banking Relations :	--
Auditors :
Name :	Pal and Shanbhogue Chartered Accountants
Address :	24, 4^th Main, Malleswaram, Bangalore – 560003, Karnataka, India
PAN.:	AABFP3689D
Associates :	Fibre Foils Limited Sansha System Limited Bunts Properties Private Limited Shetron Enterprises Private Limited
Subsidiaries :	Shetron Metropak Private Limited

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8998800	Equity Shares	Rs.10/- each	Rs.89.988 millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9003300	Equity Shares	Rs.10/- each	Rs.90.000 millions

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
Shetron Enterprises Private Limited	17,96,717	19.96%
Konjal Machines Private Limited	8,58,055	9.53%
Bunts Properties Private Limited	8,00,000	8.89%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		90.000	90.000	89.998
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		347.800	390.100	387.207
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		437.800	480.100	477.205
LOAN FUNDS
1] Secured Loans		855.400	795.100	733.891
2] Unsecured Loans		93.200	(9.400)	46.830
TOTAL BORROWING		948.600	785.700	780.721
DEFERRED TAX LIABILITIES		71.000	100.100	99.370
TOTAL		1457.400	1365.900	1357.296
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		829.600	702.900	684.180
Capital work-in-progress		9.200	15.500	70.017
INVESTMENT		13.300	13.300	10.550
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	348.600	307.500	307.539
	Sundry Debtors	264.200	249.400	263.484
	Cash & Bank Balances	73.700	78.300	78.279
	Other Current Assets	22.300	20.800	0.000
	Loans & Advances	231.500	295.500	159.944
	Tax Paid In Advance	0.000	0.000	59.406
Total Current Assets		940.300	951.500	868.652
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	221.800	201.500	132.712
	Other Current Liabilities	103.800	63.900	20.372
	Provisions	9.400	51.900	51.667
Total Current Liabilities		335.000	317.300	204.751
Net Current Assets		605.300	634.200	589.939
MISCELLANEOUS EXPENSES		0.000	0.000	2.610
TOTAL		1457.400	1365.900	1357.296

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1209.800	1149.300	1094.572
		Other Income	20.400	12.600	7.726
		TOTAL (A)	1230.200	1161.900	1102.298
Less	EXPENSES
		Cost of materials consumed	829.200	751.200
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(12.600)	0.800	915.391
		Employee benefit expense	87.332	76.532
		Other expenses	164.368	140.168
		TOTAL (B)	1068.300	968.700	915.391
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		161.900	193.200	186.907
Less	FINANCIAL EXPENSES (D)		156.700	122.900	109.402
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.200	70.300	77.505
Less/ Add	DEPRECIATION/ AMORTISATION (F)		76.600	66.200	62.411
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(71.400)	4.100	15.094
Less	TAX (H)		(29.100)	1.300	4.670
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(42.300)	2.800	10.424
Add	Transfer to Debenture Redemption Reserve		0.000	0.000	66.500
	Preliminary Expenses on issue of Debenturees written off		0.000	0.000	(21.250)
	Transfer to General Reserve		0.000	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		156.907	154.107	98.433
	BALANCE / (LOSS) CARRIED TO THE B/S		114.607	156.907	154.107
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	248.375	180.732
		Commission Earnings	NA	0.396	0.540
	TOTAL EARNINGS		NA	248.771	181.272
	IMPORTS
		Raw Materials	NA	264.268	131.186
		Stores & Spares	NA	2.748	18.925
		Capital Goods	NA	37.579	85.356
	TOTAL IMPORTS		NA	304.595	235.467
	Earnings / (Loss) Per Share (Rs.)		(4.70)	0.32	1.16

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	310.000	298.300	311.400
Total Expenditure	265.100	253.700	266.800
PBIDT (Excl OI)	44.900	44.600	44.600
Other Income	01.300	02.000	09.300
Operating Profit	46.200	46.600	53.900
Interest	40.900	42.700	42.400
Exceptional Items	0.000	0.000	0.000
PBDT	05.300	03.900	11.500
Depreciation	19.700	19.900	19.900
Profit Before Tax	(14.400)	(16.000)	(8.400)
Tax	(4.700)	(5.100)	(4.000)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(9.700)	(10.900)	(4.400)
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	(9.700)	(10.900)	(4.400)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(3.44)	0.24	0.95
Net Profit Margin (PBT/Sales)	(%)	(5.90)	0.36	1.38
Return on Total Assets (PBT/Total Assets}	(%)	(4.03)	0.25	0.97
Return on Investment (ROI) (PBT/Networth)		(0.16)	0.01	0.03
Debt Equity Ratio (Total Debt /Networth)		2.17	1.64	1.64
Current Ratio (Current Asset/Current Liability)		2.81	2.30	4.24

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

DETAILS OF LITIGATIONS

HIGH COURT OF KARNATAKA

High Court of Karnataka - Principal Bench at Bangalore

ITA 373/2012

Petitioner/Appnt. Name	COMMISSIONER OF INCOME
Respondent/Defnt. Name	M/S SHETRON LIMITED
Petnr./Appnt. Advocate	E I SANMATHI
Respnt./Defnt. Advocate
Date Filed	17.11.2012
District	Bangalore City

Stage	HEARING Last Posted for: ORDERS
Last Action Taken	ADMIT/RULE Last Date of Action : 15/01/2013 Next hearing date : 18/02/2013
Latest Order:	ADMIT
Before Hon'ble Judge/s	REGISTRAR (JUDICIAL)

Lower Court Details [Appeal from below case.]

Case No	Court name	Disposal Dt
ITA 720/2010	INCOME TAX APPELLATE TRIBUNAL BANGALORE	15/06/2012

Details of the Daily Order 

(Click on date of order to get full order)

Sl.No.	Honble Judge	Date of Order
1	HONBLE DVSKJ & BMJ	10/01/2013

YEAR IN RETROSPECT

The Company achieved Gross turnover and other income of Rs.1302.500 Millions against the previous year turnover of Rs.1230.200 Millions showing an increase of about 6% in sales over previous year. The loss after tax was Rs.42.300 Millions compared to profit Rs.2.800 Millions in the previous year. Major factors that contributed to the loss for the year, as compared to the previous year were the overall increase in raw materials and other input costs, higher Interest cost and provision for depreciation. The details are annexed in the Management Discussion and Analysis Report

BUSINESS PROSPECTS

The outlook for metal packaging industry is very positive in the long term. The Company installed new can line machine during the second quarter. With the expansion of Installed Capacity, the company is expanding its operations into new segments in food Industry. However on profitability front, the overall increasing trend in input costs poses challenge to protect the profit margin in the current financial year. The Directors are confident that the fructification of their capex plans would yield positive results within next two years. The highlights of the industry trend, the outlook and the opportunities ahead for the company.

EXPORTS

During the year, the export turnover has increased to Rs.293.100 Millions i.e., an increase of 15% over the previous year sales of Rs.255.300 Millions. Major exports were made to Asian, Middle East, African and Australian countries. SUBSIDIARY: The statement pursuant to Section 212 of the Companies Act 1956 containing details of financial highlights of the subsidiary company forms part of the Annual Report.

AWARDS and LAURELS

The company has bagged the “Award of Excellence for food” for the Tenth consecutive year in 2012 issued by IMDA, USA (International Metal Decorators Association) in recognition of the excellence in quality for printing. Each year the IMDA conducts a Quality Contest to recognize the skillful achievements of the metal decorating industry. Entries from around the globe are judged in eight categories with the best entry given the Grand Award.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEW:

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956, guidelines issued by the Securities and Exchange Board of India (SEBI) and the Generally Accepted Accounting Principles (GAAP) in India. Their Management accepts responsibility for the integrity and objectivity of these financial statements, as well as for the various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present ourstate of affairs, profits and cash flows for the year.

ECONOMY, INDUSTRY STRUCTURE AND DEVELOPMENTS IN FOOD CANS AND BATTERY SEGMENTS:

GLOBAL ECONOMIC OVERVIEW

The global economic environment, which was tenuous upto September 2011, turned adverse from September 2011owing to the turmoil in the euro-zone, and US economy unable to come out of recession fully. The impact of global slowdown in major economies of the world was not promising. The Impact of weak global market had an adverse effect on Indian economy partially and moving forward, India will not be immune to the external environment and islikely to see some challenges during first half of next financial year as well. There is an apprehension that the process of global economic recovery that began after the financial crisis of the 2008 is beginning to stall and thesovereign debt crisis in the euro-zone area may persist for a while. The global economy is expected to grow by3.3 per cent in 2012 compared to 3.8 per cent in 2011 as per the International Monetary Fund’s (IMF) January 2012 update of the World Economic Outlook (WEO).

Growth of Food and Packaging industry in India

Food: A thriving industry in India

The Indian food market has experienced a good growth over the years. The economic liberation and high growth rate of economy has put a positive impact on the food and agriculture market in the country. This has led to lesser imports and high rate of exports in terms of quality and quantity. India being world's second largest producer of food next to China also ranks second in vegetable and third largest fruit producer in the world. Of the world's total annual spice trade of 850,000 tons, India accounts for 4% in quantity. The trend for functional foods market earned revenues is expected to reach Rs.54500.000 Millions in 2012.

Main segments of the Indian food market

The food industry in India mainly consists of a number of sectors. Some of the well-known ones are:

Dairy and food processing

Canning

Frozen food refrigeration

Thermo processing

Specialty processing

Some of the other sectors which are expected to grow as a lucrative option of business in the coming years are:

Fruits and vegetables

Confectionary

Aqua culture and fishing

Meat and poultry

Fast food and snacks

Ready to eat food

Recent trends in the India food market

According to the recent survey, the Indian food market is all set to be double by the year 2025. The rapid economic development, innovative technology, growing consumerism and improved lifestyle are the main reasons behind this growth. Today, Indian consumers are paying for branded and value added food products which have led to the introduction of new segments in the manufacturing and retail market. Over the last few years, the annual output of the food market in India has been around $155 billion which is expected to reach around $344 billion by the year 2025. The annual rate of growth is expected to be around 4.1 %. The market share of the Indian snacks is around US$ 3 billion with a growth rate of around 15-20 %. The unorganized snacks market is worth around US$ 1.56 billion with a 7-8 % growth rate.

Growth drivers promoting the growth of packaging industry:

SMEs involved in the food packaging industry will continue to see sustained growth, due to the expansion of the food processing industry in an under-served Indian market. The growth of the Indian food processing sector has nearly doubled to 13.7 per cent during the last four years. There are opportunities and challenges. The Indian processed food industry is experiencing a major boom due to an increasingly urbanized population and a shift in their dietary habits. Ready-to-eat food products and microwaveable or quick reheat meals are becoming popular on the shelves of India's retail outlets. Packaging is extremely crucial to the success of the food product being sold. It has aesthetic, functional and safety attributes that influence their success with the consumer. Advances in packaging materials and techniques are helping food processors position their products in newer segments. Packaging has become an important differentiator for brands. The quality of labeling and graphics has also undergone a major shift. Overall, the trend is that Indian packaged food is coming of age to confirm to international standards. The major trends that are having a major effect on food packaging innovations are convenience of usage, sustained freshness and increased shelf life and brand positioning.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Term loans from other	103.700	0.000
Deferred payment liabilities	12.400	13.000
Loans and advances from related parties	72.000	33.500
Short-term borrowings
Other loans and advances, others	(94.900)	(55.900)
Total	93.200	(9.400)

FIXED ASSETS:

• Land (Freehold)
• Building
• Leasehold Improvements
• Plant and Machinery
• Furniture, Fittings and Equipments
• Vehicles
• Software
• Previous Years
• Capital Work in Progress

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.95
UK Pound	1	Rs.83.81
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.